Khazanah To Observe MAS Unions' Retrenchment Benefits According To CA

KUALA LUMPUR, May 27 (Bernama) — Khazanah Nasional Bhd has agreed to observe the retrenchment package for Malaysia Airlines (MAS) employees in accordance with the collective agreement (CA), which include a 1.5-month salary in lieu of every year of service and not less, MAS Employees Union (Maseu) said.

MASEU executive secretary Mohd Jabarullah Abdul Kadir said the outcome of yesterday’s last minute meeting called by Khazanah, the owner of MAS, had been finalised in accordance with the terms sought by the unions.

“The most crucial thing is that the employees will get what had been promised under the CA. That’s important,” he told Bernama.

Mohd Jabarullah said that the union was concerned over employees who would be laid off, but were still willing to work as they have responsibilities on their shoulders.

“I just wish that they are taken to be retrained so that they can be employed elsewhere,” he said.

Between 6,000 and 8,000 of MAS employees out of about 20,000 will be laid off by Khazanah over the next one year as part of its RM6 billion plan to reduce it into a smaller airline with focus on regional medium routes.

Two-thirds of the employees would be rehired in a new company, MAS Bhd, which will start operations on Sept 1.

The termination letter that was supposed to be issued by MAS today had been put off to the first week of June.

Asked the reason for the delay, Mohd Jabarullah said that MAS needed more time to review the content of the CA, including the exact numbers of employees to be terminated.

“We don’t know, it could be 6,000 workers, maybe more, maybe less. So all these factors could have caused the delay (in issuing the letter).

“The delay will not be long, if I am not mistaken, (it will be issued) in the first week of June. So they (MAS) did not trouble any parties.

“Although the CA may not be in the best of interest of every employee, the union is satisfied that it abided by the CA as what had been mutually agreed,” he said.